Lookback Bet (UP)
How does it work?
- The Lookback bet pays the difference between the strike price and the BEST (highest) price that the market reaches over the life of the bet, multiplied by the trader’s chosen value per point.
- The bet LOCKS IN every point that the price reaches so that the trader always gets the optimal payout at expiry.
- It is perfectly structured for the traders who often pick the right time to buy but the wrong time to sell.
- As with all BetsForTraders.com bets you can never lose more than your stake.
How to bet
- Set a strike price at or above the market's current price.
- Set how much you want to win per point and the expiry time of the bet.
- Then place your bet.
Example
The Wall Street Index is currently trading at 10,900 and a trader prices a one month up Lookback bet with a strike price of 10,900 at $1 per point.At expiry the highest price that the Index ever reached over the month was 11,700 but by the end of the month the price had fallen back again to 10,700. The trader wins the difference between the strike price and the highest market price seen, multiplied by $1.
"11,700 – 10,900 = 800 at $1 = $800"---
Note that a 3 day bet expires in 3 market days at the same time as it was placed. A 3 hour bet expires in 3 market hours, even if this means rolling over to the next day. The same applies for bets denominated in minutes.
Lookback Bet (DOWN)
How does it work?
- The Lookback bet pays the difference between the strike price and the BEST (lowest) price that the market falls to over the life of the bet, multiplied by the trader’s chosen value per point.
- The bet LOCKS IN every point that the price falls so that the trader always gets the optimal payout at expiry.
- It is perfectly structured for the traders who often pick the right time to go short but the wrong time to close.
- As with all BetsForTraders.com bets you can never lose more than your stake.
How to bet
- Set a strike price at or below the asset’s current price.
- Set how much you want to win per point and the expiry time of the bet.
- Then place your bet.
Example
The Wall Street Index is currently trading at 10,900 and a trader prices a one month down Lookback bet with a strike price of 10,900 at $1 per point.At expiry the lowest price that the Index ever fell to over the month was 10,100 but by the end of the month the price had risen to 11,100. The trader wins the difference between the strike price and the lowest market price seen, multiplied by $1.
"10,900 – 10,100 = 800 at $1 = $800"--
Note that a 3 day bet expires in 3 market days at the same time as it was placed. A 3 hour bet expires in 3 market hours, even if this means rolling over to the next day. The same applies for bets denominated in minutes.
